Advance Tax: Pay your second installment by September 15 to avoid penalties
By: Admin
September 14, 2024
Categories: TAX News
4 Min Read
Many individual taxpayers mistakenly assume that advance tax payments are only applicable to businesspersons, companies, and corporates. However, even salaried taxpayers may need to pay advance tax if their estimated tax liability exceeds Rs 10,000 after accounting for TDS and TCS.
Key Facts:
The second installment for FY 2024-25 is due on September 15, 2024.
Who needs to pay advance tax?
Any individual with an estimated tax liability exceeding Rs 10,000 for the financial year must pay advance tax, as per Section 208 of the Income-Tax Act, 1961. This requirement doesn’t apply to senior citizens who don’t have income from a business or profession.
Advance tax in four installments:
Advance tax is payable in four installments throughout the year:
- 15% by June 15.
- 45% by September 15.
- 75% by December 15.
- 100% by March 15.
For those under the presumptive taxation scheme, advance tax can be paid in one installment by March 15.
How to pay advance tax:
Log in to the Income Tax portal www.incometax.gov.in and follow the process to pay your advance tax for *FY 2024-25. Ensure that you select *Assessment Year 2025-26 and “Advance Tax (100)” as the payment type.
Penalties for missing the deadline:
Failure to pay advance tax on time leads to penal interest at 1% per month on the unpaid amount. Penalties apply if advance tax payments are less than 12%, 36%, 75%, or 100% by the respective due dates of *June 15, **September 15, **December 15, and *March 15.
Avoid last-minute hassles and hefty penalties by paying your dues before the deadline.
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